Russian grain exporters will buy ships in China because it is too expensive in Russia

Russian grain exporters need to renew their fleet of 61 large-capacity vessels, but construction in Russia is four times more expensive than in China. For this reason, Rosagroleasing and the United Shipbuilding Corporation (USC) have agreed to order the first ten bulk carriers from Chinese shipyards. This was reported by the Russian Kommersant.

In particular, it includes 27 Handysize vessels (40,000 dwt) and 34 Supramax vessels (60,000 dwt).

According to JSC estimates, construction in Russia will cost between 12.5 and 16.5 billion rubles ($160-200 million) per vessel, while in China the same vessels cost 3.5-4.2 billion rubles ($43-52 million).

Grain exporters say that to be profitable and competitive, a ship should cost no more than 5.5 billion rubles ($68 million).

Construction in Russia will take at least two and a half years, even with shipyard modernization and government support. In China, the first vessels could be ready in 1-1.5 years.

The plan stipulates that the first ten bulk carriers will be fully built in China, with the JCC controlling the process, having access to the design documentation, and performing technical acceptance of the work performed.

The remaining 51 bulk carriers could be built in Russia if a market price can be secured for the construction and supply of equipment.

Experts say that Russia cannot compete with China in the serial construction of such vessels due to a lack of capacity and low productivity.

Tags: Russia